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Last updated: August 28, 2025.
As of August 29, 2025, shipments from Canada to the U.S. valued under $800 USD will no longer be duty- and tariff-free under the U.S. de minimis exemption, unless the goods meet CUSMA (Canada-United States-Mexico Agreement) requirements. The U.S. administration made the decision to eliminate this exemption. According to CFIB surveys, nearly one-third of exporters expect to be negatively affected. Its loss means higher costs, more paperwork, and possible delays.
What this change means for you will depend on whether your goods are CUSMA-compliant.
1) Are your goods CUSMA-compliant?
If your goods qualify as CUSMA-compliant, because they are produced or substantially transformed in Canada, the U.S., or Mexico according to the agreement’s rules of origin, they can still enter the U.S. duty- and tariff-free after August 29, 2025.
Tips to consider from CFIB, Canada post, UPS and Fedex:
- Work with your customs broker or freight forwarder to confirm CUSMA-compliance
- Ensure the accuracy of your manifest data and commercial invoice (now required)
- Ensure CUSMA statement of origin is included directly on the commercial invoice or in a separate Free Trade Agreement certificate
- Consider whether you need to get a U.S. bond
2) Can your goods become CUSMA compliant?
If you currently import material from outside North America (e.g., parts from Europe or Asia), check whether you can adjust sourcing or production so that your finished products qualify under CUSMA rules.
- Sometimes a small shift in sourcing can make a product eligible.
- Speak to your supplier network or broker about what changes would be needed.
Resources to help you:
- CFIB
- The Trade Commissioner Service:
- Understanding CUSMA Compliance webpage explains how to qualify for duty-free access (called "preferential treatment") and what you need to know about the rules of origin and certification of origin
- FAQ section
- Contact Us form for specific questions
- Call their support line at 1-833-760-1167
- The U.S. Customs and Border Protection (CBP)
- For advice tailored to your business, it’s a good idea to speak with a customs broker. They can walk you through the process and help you avoid costly mistakes.
- You can also reach out to U.S. Customs and Border Protection (CBP),who make the final call on whether your goods qualify for duty-free treatment when entering the U.S
3) What if your goods are not CUSMA-compliant?
If your products include materials from countries outside CUSMA, those shipments may now face:
- U.S. duties and tariffs: Goods that do not qualify under CUSMA rules of origin will face a 35% tariff, except where specific sectoral tariffs apply (see details here).
- Brokerage or processing fees from Canada Post/USPS or private couriers
- Potential for longer delivery times at the border due to extra paperwork and/or border inspections.
What you can do:
- Review your product codes (HS codes) with a broker to determine which duties apply.
- Communicate with your U.S. customers so they aren’t surprised by added costs.
- Track the impact: keep records of new fees, delays, and lost sales. Real numbers and examples will strengthen CFIB’s advocacy.
- Share your Comments or Questions: Share your story with CFIB so we can strengthen our advocacy with real examples from small business.
In brief:
- If your goods are CUSMA-compliant → include the CUSMA origin declaration for duty-free treatment.
- If not compliant → U.S. duties/fees apply, and couriers (Canada Post, FedEx, UPS) will require proof they’ve been paid before delivery.
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